Here's something that I tried that works reasonably well for a small diameter sanding spindle and its cheap.
I got a couple of 1/8 x 2 cotter pins. Cut a strip of sand paper about 1 wide. Stuck one end in the split of the cotter pin almost to the loop. Wrap the sand paper around the pin and mount it in a 1/8 collet in the Foredom. Ready to go. When the sand paper wears out, I just rip a little bit off to expose fresh sandpaper. You can put a small o ring on one end to hold the sandpaper in place, or just let it flap around like I do.
Ric
I got a couple of 1/8 x 2 cotter pins. Cut a strip of sand paper about 1 wide. Stuck one end in the split of the cotter pin almost to the loop. Wrap the sand paper around the pin and mount it in a 1/8 collet in the Foredom. Ready to go. When the sand paper wears out, I just rip a little bit off to expose fresh sandpaper. You can put a small o ring on one end to hold the sandpaper in place, or just let it flap around like I do.
Ric